Here, you’ll find everything you need to know about the Child Tax Credit for July 2024: payout date, payment amount, potential increases, and updates. The Child Tax Credit is a government program in the US designed to provide financial support to families raising children. It operates as a tax credit, reducing the amount of federal tax owed directly. Eligibility and benefits are based on individual tax filings. For detailed information on the Child Tax Credit in July 2024, including payment details and more, keep reading this article.
Child Tax Credit July 2024
The Child Tax Credit (CTC) is a vital tax benefit program in the United States aimed at supporting families raising children. It provides a tax credit that reduces federal income tax liability or offers a refund if no taxes are owed. As of 2024, there are no more monthly CTC payments; instead, the credit will be claimed based on individual payment details, eligibility, and requirements.
The July 2024 Child Tax Credit falls within the 2023 tax filing period. Therefore, confirmation of the July 2024 CTC is pending. Discussions are ongoing about potential changes to the CTC, such as increasing the refundable portion of the credit, raising the credit amount per child, and possibly reintroducing monthly payments.
CTC Payout Date
Starting July 2024, the Child Tax Credit has reverted to its pre-2021 structure. The maximum credit amount is $2,000 per qualifying child, with up to $1,700 of the credit being refundable, meaning it can be received even if you don’t owe federal income tax.
Payments for the July 2024 Child Tax Credit are not scheduled. If you have a qualifying child in 2024, you will claim the credit when you file your tax return in 2025. There will be no separate payout for the CTC.
To qualify for the credit, you must meet specific eligibility criteria. This includes having income within certain limits based on your Modified Adjusted Gross Income (MAGI). The credit amount may decrease or phase out entirely depending on your income level.
The child you claim for the CTC must be your dependent and under the age of 17. Additionally, you must be a US citizen and file an income tax return, even if you do not owe any tax.
Payment Amount
Regarding the Child Tax Credit, the payment amount depends on the tax year. In July 2024, which falls within the tax filing period for the 2023 tax year, there was no separate payment for the CTC. Instead, you would claim the credit when you file your tax return in April 2024.
Looking ahead to July 2024 for the Child Tax Credit, if you have a qualifying child, you must claim it when filing your 2025 return. For the 2024 tax year, the maximum credit amount per qualifying child is approximately $2,000. Of this, up to $1,700 is refundable. There are ongoing discussions in Congress about potentially increasing the refundable portion, expanding the credit amount, and reinstating monthly payments.
Possible Increase and News
Under the ongoing discussions regarding the Child Tax Credit for July, there are proposals aimed at increasing the portion of the credit that is refundable, making it more accessible to low-income families.
There are also talks about raising the amount of the credit per child, especially for younger children. The convenience of monthly payments, which were introduced in 2021, continues to be a topic of interest for future versions of the CTC.
As of now, there have been no concrete legislative changes to the Child Tax Credit. Discussions about expanding it are ongoing. To stay informed about the latest updates on the Child Tax Credit in July, you can visit leading IRS web portals, tax news websites, and federal congressional websites.
Overall, the Child Tax Credit remains a valuable tax benefit for families raising children. While there are no monthly payments for the 2024 tax year, understanding your eligibility and credit when filing your tax return can offer significant financial relief.